The boss of Goldman Sachs claimed yesterday that bankers were doing 'God's work'.

Lloyd Blankfein is the latest money man to defend bumper bank bonuses, suggesting a return to massive profits should be welcomed.

However, the chief executive of the Wall Street firm admitted people were 'p***** off, mad and bent out of shape' as a result of bankers' actions.

Lloyd Blankfein has defended the return of bumper profits and bonuses to Goldman Sachs

He also acknowledged: 'I could slit my wrists and people would cheer.'

Mr Blankfein made his comments just 12 months after bankers brought the world's economy to the brink of collapse.

He said modern banking performed a vital function and described himself as just a banker 'doing God's work'.

'We're very important. We help companies to grow by helping them
to raise capital. Companies that grow create wealth. This, in turn,
allows people to have jobs that create more growth and more wealth. We
have a social purpose.'

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The bank provoked anger last month by revealing it planned to lavish a record £13.4billion in pay and bonuses on its staff.

Around 5,500 of its employees work in London and are in line to
receive an average £440,000 each following a sharp rise in profits.

Mr Blankfein's comments will embarrass Chancellor Alistair
Darling and City minister Lord Myners, who had promised to slam the
brakes on corporate excess.

It will also enrage credit-starved business after taxpayers were forced to pay the £37billion bill to bail out the banks.

Liz Beshel (L), global treasurer, was snapped up by Goldman Sachs straight from college and is the firm's youngest ever global treasurer. Egyptian-American Dina Powell, head of corporate engagement (R)

While Mr Blankfein conceded that people are angry at bankers, he
said that the bank's recent performance is cause for celebration as
rising profits indicate economic recovery.

He told the newspaper: 'Everybody should be happy. Companies are looking to grow again and raise money. That's where we come in.

'The financial system may have led us into the crisis but it will lead us out.'

Goldman Sachs contributed to the meltdown that crippled the global financial system.

Like many other banks, it lent too much money and ended up having to borrow money from the U.S. government.

Goldman Sachs has since paid the £6bn back, exempting it from President Barack Obama's cap on bonuses.

As a result the
average pay this year for the bank's UK staff will be around £440,000.

Top earners will get tens of millions, several hundred thousand times more
than a cleaner at the company.

Mr Blankfein said that it was necessary to pay its best bankers top wages in order to ensure high-quality, responsible banking.

The Goldman Sachs complex of offices in Fleet Street, London

'I don't want to put a cap on their ambition. It's hard for me to put a cap on their compensation,' he told the newspaper.

He also claimed that limiting banker's pay would damage the financial system.

'If
you examine our practices on compensation, you will see a complete
correlation throughout our history of having remuneration match
performance over the long term.

'Others made no money and still paid large bonuses. Some are not around any more. I wonder why?'

Last month, Goldman Sachs said it had performed so well that its pay and bonus
pot for the first nine months was up 46 per cent at £10.2bn.

It was
reported that the bank was contemplating donating in excess of £627m to charity in an attempt to soften the angry response to the likely size of the pot.